Exhibit 99
NEWS RELEASE
For more information, contact:
Steve Albright
Chief Financial Officer
(636) 733-1305
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Third-Quarter Financial Results
CHESTERFIELD, MO, October 31, 2013 – Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the third quarter of 2013.
Net sales for the quarter were $16.5 million, an 8.3 percent increase from the third quarter last year. Net U.S. sales totaled $13.2 million, an increase of $1.1 million, or 9.0 percent, compared to third-quarter 2012 net sales. Net sales outside of the United States rose 5.4 percent in the third quarter of 2013 compared to the prior-year quarter, led by the European market where net sales increased by 21.3 percent.
Income from operations for the third quarter of 2013 increased to $402,000 compared to a loss of $32,000 in the same quarter of 2012 due to the increase in net sales in the United States. Net income for the third quarter of 2012 included a one-time after-tax gain of approximately $247,000 resulting from a discounted balance due on a purchase agreement entered into in a previous year. As a result, net income for the third quarter of 2012 was $287,000 or $0.02 per diluted share, compared to net income for the third quarter of 2013 of $293,000 or $0.02 per diluted share.
Third quarter 2013 net sales grew in the United States as Reliv continues to focus on its LunaRich® product line. The LunaRich product line contains elevated levels of lunasin, a naturally occurring soy peptide that works at the epigenetic level in cells to promote optimal health. Reliv acquired the exclusive rights to certain intellectual property related to lunasin and its production from Soy Labs, LLC in July 2013.
“The word is getting out about lunasin as new studies emerge,” said Robert L. Montgomery, Chairman and CEO of Reliv. “Reliv’s LunaRich® products deliver more bioactive lunasin than any other product available today, and for the first time we control an ingredient in its entirety,from the extraction process to the patented mechanisms of action within the body.” U.S. third-quarter net sales were led by the flagship products in the LunaRich line, Reliv Now® and LunaRich X™, which made up 18.1 and 13.2 percent of U.S. sales, respectively.
Also, sales in the United States were boosted by the impact of its Ignition Master Affiliate qualification promotion. The number of new Master Affiliates, the level at which distributors are eligible to earn generation royalties, increased to 694 during the third quarter of 2013 compared to 284 during same period in 2012, an increase of 144%. “People are seeing health results with Reliv’s LunaRich products and entrepreneurs are seeing a potentially lucrative business opportunity in distributing nutritional products containing an exclusive ingredient,” said Montgomery. “The lunasin technology acquisition coupled with a promotion that encourages distributor advancement to the Master Affiliate level has created an ideal environment to launch a Reliv distributorship.”
Montgomery added: “The epigenetic science behind lunasin gives Reliv a competitive advantage in the supplement industry.Today’s health care concernsare creating high demand for proactive approaches to wellness. Nutritional epigenetics and the idea that you can help direct your DNA naturally through nutrition holds the potential for mass appeal. We believe no other products are positioned to fill this market need like Reliv’s LunaRich line.”
Growth in Europe continued with net sales of $1.7 million in the third quarter of 2013 compared to $1.4 million in the prior-year third quarter. “Europe remains Reliv’s strongest international market and we expect growth to continue,” Montgomery said.
Worldwide net sales for the first nine months of 2013 were $50.8 million, representing a 1.9 percent decrease from the same period in 2012. In the United States, net sales declined 1.7 percent compared with the first nine months of the prior year. Net sales outside of the United States decreased by 2.7 percent in the first nine months of 2013 compared with the first nine months last year.
Reliv reported net income of $274,000, or $0.02 per diluted share in the first nine months of 2013, compared to $922,000 or $0.07 per diluted share in the same period of 2012.
Reliv’s total distributor count was 51,920 as of September 30, 2013 – a decrease of 11.4 percent from the same date in 2012 – of which 6,670 are Master Affiliate level and above. The number of Master Affiliates decreased by 0.6 percent compared to the year ago total.
Net cash generated from operating activities in the first nine months of 2013 totaled $1.3 million, representing an increase of $243,000 over the first nine months of 2012. Reliv had cash and cash equivalents of $5.7 million as of September 30, 2013, an increase of $843,000 from the same date last year.
About Reliv International, Inc.
Reliv International, based in Chesterfield, MO, produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss,athletic performance, digestive health, women's health, anti-aging and healthy energy. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, the peptide behind many of soy’s health benefits. The company sells its products through an international network marketing system of independent distributors in 16 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter or YouTube.
Statements made in this news release that are not historical facts are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Company’s web site,www.reliv.com.
--FINANCIAL HIGHLIGHTS FOLLOW –
Reliv International, Inc. and Subsidiaries | | | | | | | | | | | | |
ADD TWO | | | | | | | | | | | | |
| | | | | | | | | | | | |
Condensed Consolidated Balance Sheets | | | | | | | | | | | | |
| | September 30 | | | December 31 | | | | | | | |
| | 2013 | | | 2012 | | | | | | | |
| | (Unaudited) | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 5,744,193 | | | $ | 5,801,042 | | | | | | | | | |
Accounts receivable, less allowances of | | | | | | | | | | | | | | | | |
$23,000 in 2013 and $35,700 in 2012 | | | 253,864 | | | | 247,087 | | | | | | | | | |
Accounts and note due from employees and distributors | | | 137,408 | | | | 109,346 | | | | | | | | | |
Inventories | | | 5,080,058 | | | | 5,262,916 | | | | | | | | | |
Other current assets | | | 1,356,381 | | | | 1,070,301 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total current assets | | | 12,571,904 | | | | 12,490,692 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Other assets | | | 4,432,385 | | | | 4,212,442 | | | | | | | | | |
Intangible assets, net | | | 3,263,436 | | | | 1,443,635 | | | | | | | | | |
Net property, plant and equipment | | | 6,880,018 | | | | 7,111,772 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Assets | | $ | 27,147,743 | | | $ | 25,258,541 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total current liabilities | | $ | 7,817,234 | | | $ | 6,614,631 | | | | | | | | | |
Long-term debt, less current maturities | | | 2,747,455 | | | | 2,401,312 | | | | | | | | | |
Other non-current liabilities | | | 987,362 | | | | 660,728 | | | | | | | | | |
Stockholders' equity | | | 15,595,692 | | | | 15,581,870 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 27,147,743 | | | $ | 25,258,541 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Consolidated Statements of Operations | | | | | | | | | | | | |
| | Three months ended September 30 | | | Nine months ended September 30 | |
| | 2013 | | | 2012 | | | 2013 | | | 2012 | |
| | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Product sales | | $ | 15,241,597 | | | $ | 13,571,674 | | | $ | 46,296,517 | | | $ | 46,081,154 | |
Handling & freight income | | | 1,297,867 | | | | 1,704,862 | | | | 4,525,618 | | | | 5,719,730 | |
| | | | | | | | | | | | | | | | |
Net Sales | | | 16,539,464 | | | | 15,276,536 | | | | 50,822,135 | | | | 51,800,884 | |
| | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Cost of products sold | | | 3,529,027 | | | | 3,052,687 | | | | 10,490,825 | | | | 10,174,128 | |
Distributor royalties and commissions | | | 5,974,652 | | | | 5,737,908 | | | | 18,595,100 | | | | 19,512,681 | |
Selling, general and administrative | | | 6,633,771 | | | | 6,517,747 | | | | 21,121,858 | | | | 21,013,651 | |
| | | | | | | | | | | | | | | | |
Total Costs and Expenses | | | 16,137,450 | | | | 15,308,342 | | | | 50,207,783 | | | | 50,700,460 | |
| | | | | | | | | | | | | | | | |
Income (loss) from operations | | | 402,014 | | | | (31,806 | ) | | | 614,352 | | | | 1,100,424 | |
| | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | |
Interest income | | | 37,240 | | | | 36,681 | | | | 113,072 | | | | 86,858 | |
Interest expense | | | (22,187 | ) | | | (20,124 | ) | | | (58,182 | ) | | | (82,338 | ) |
Other income (expense) | | | 28,637 | | | | 437,745 | | | | (62,482 | ) | | | 376,513 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 445,704 | | | | 422,496 | | | | 606,760 | | | | 1,481,457 | |
Provision for income taxes | | | 153,000 | | | | 135,000 | | | | 333,000 | | | | 559,000 | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 292,704 | | | $ | 287,496 | | | $ | 273,760 | | | $ | 922,457 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Earnings per common share - Basic | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.07 | |
Weighted average shares | | | 12,616,000 | | | | 12,480,000 | | | | 12,617,000 | | | | 12,499,000 | |
| | | | | | | | | | | | | | | | |
Earnings per common share - Diluted | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.07 | |
Weighted average shares | | | 12,842,000 | | | | 12,636,000 | | | | 12,785,000 | | | | 12,657,000 | |
| | | | | | | | | | | | | | | | |
Cash dividends declared per common share | | $ | - | | | $ | - | | | $ | 0.02 | | | $ | 0.02 | |
Reliv International, Inc. and Subsidiaries |
ADD THREE |
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Net sales by Market |
(in thousands) |
| | Three months ended September 30, | | | Change From | |
| | 2013 | | | 2012 | | | Prior Year | |
| | Amount | | | % of Net Sales | | | Amount | | | % of Net Sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | |
United States | | $ | 13,163 | | | | 79.6 | % | | $ | 12,073 | | | | 79.0 | % | | $ | 1,090 | | | | 9.0 | % |
Australia/New Zealand | | | 429 | | | | 2.6 | % | | | 462 | | | | 3.0 | % | | | (33 | ) | | | -7.1 | % |
Canada | | | 384 | | | | 2.3 | % | | | 381 | | | | 2.5 | % | | | 3 | | | | 0.8 | % |
Mexico | | | 225 | | | | 1.4 | % | | | 274 | | | | 1.8 | % | | | (49 | ) | | | -17.9 | % |
Europe | | | 1,685 | | | | 10.2 | % | | | 1,389 | | | | 9.1 | % | | | 296 | | | | 21.3 | % |
Asia | | | 653 | | | | 3.9 | % | | | 698 | | | | 4.6 | % | | | (45 | ) | | | -6.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | $ | 16,539 | | | | 100.0 | % | | $ | 15,277 | | | | 100.0 | % | | $ | 1,262 | | | | 8.3 | % |
Net sales by Market |
(in thousands) |
| | Nine months ended September 30, | | | Change From | |
| | 2013 | | | 2012 | | | Prior Year | |
| | Amount | | | % of Net Sales | | | Amount | | | % of Net Sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | |
United States | | $ | 40,101 | | | | 78.9 | % | | $ | 40,786 | | | | 78.7 | % | | $ | (685 | ) | | | -1.7 | % |
Australia/New Zealand | | | 1,402 | | | | 2.8 | % | | | 1,482 | | | | 2.9 | % | | | (80 | ) | | | -5.4 | % |
Canada | | | 1,310 | | | | 2.6 | % | | | 1,370 | | | | 2.7 | % | | | (60 | ) | | | -4.4 | % |
Mexico | | | 759 | | | | 1.5 | % | | | 832 | | | | 1.6 | % | | | (73 | ) | | | -8.8 | % |
Europe | | | 5,664 | | | | 11.1 | % | | | 4,724 | | | | 9.1 | % | | | 940 | | | | 19.9 | % |
Asia | | | 1,586 | | | | 3.1 | % | | | 2,607 | | | | 5.0 | % | | | (1,021 | ) | | | -39.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | $ | 50,822 | | | | 100.0 | % | | $ | 51,801 | | | | 100.0 | % | | $ | (979 | ) | | | -1.9 | % |
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The following table sets forth, as of September 30, 2013 and 2012, the number of our active distributors and Master Affiliates and above. We define an active distributor as one that enrolls as a distributor or renews its distributorship during the prior twelve months. Master Affiliates and above are distributors that have attained the highest level of discount and are eligible for royalties generated by Master Affiliates and above in their downline organization. Beginning with the September 30, 2013 data, the active distributor count for Europe includes our preferred customers in France. This program began in mid-2013 and the Europe active distributor count as of 9/30/13 includes 1,040 preferred customers. |
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Active Distributors and Master Affiliates and above by Market |
| | As of 9/30/2013 | | | As of 9/30/2012 | | | Change in % | |
| | Total Active Distributors | | | Master Affiliates and Above | | | Total Active Distributors | | | Master Affiliates and Above | | | Total Active Distributors | | | Master Affiliates and Above | |
| | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 38,670 | | | | 4,830 | | | | 41,300 | | | | 4,990 | | | | -6.4 | % | | | -3.2 | % |
Australia/New Zealand | | | 1,470 | | | | 200 | | | | 1,910 | | | | 150 | | | | -23.0 | % | | | 33.3 | % |
Canada | | | 1,270 | | | | 220 | | | | 1,270 | | | | 210 | | | | 0.0 | % | | | 4.8 | % |
Mexico | | | 1,080 | | | | 150 | | | | 1,810 | | | | 150 | | | | -40.3 | % | | | 0.0 | % |
Europe | | | 5,800 | | | | 820 | | | | 6,440 | | | | 650 | | | | -9.9 | % | | | 26.2 | % |
Asia | | | 3,630 | | | | 450 | | | | 5,840 | | | | 560 | | | | -37.8 | % | | | -19.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | | 51,920 | | | | 6,670 | | | | 58,570 | | | | 6,710 | | | | -11.4 | % | | | -0.6 | % |